Correspondent Bank

From Open Risk Manual

Definition

Correspondent Bank is a financial institution that provides services on behalf of another financial institution.

A correspondent bank can conduct business transactions, accept deposits and gather the proceeds of trade transactions on behalf of the other financial institution. Correspondent banks are more likely to be used to conduct business in foreign countries, and act as a domestic bank’s agent broad[1]

References

  1. Standard Definitions for Techniques of Supply Chain Finance, Global Supply Chain Finance Forum

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